Remember when waiting five to seven business days to receive an online order was considered reasonable?
In the world of instant gratification we now live in, where 97% of consumers call faster delivery critical to their purchasing decisions, it’s hard to imagine that this was ever the norm. Eighty-six percent of shoppers today consider faster delivery to be within two days after placing their order, while 63% expect to receive their items within this timeframe and won’t even accept deliveries that arrive later.As faster delivery grows as a purchase driver, so does the number of consumers who are paying more for it. Fifty-eight percent of consumers have paid more for faster delivery in 2023 so far, with most having paid extra for next-day delivery (69%) and same-day delivery (61%). When it comes to how much consumers are willing to spend, the majority expressed that they would pay $5 or more for same-day delivery and at least $3 for next-day and 2-day delivery.
Faster delivery can also help retailers drive customer loyalty and attract younger shoppers, who value convenience and seamless online shopping experiences. Over half (53%) of consumers would sign up for a loyalty program in order to get faster delivery. Speed is the top consideration for Gen Z and Millennials shoppers, with next-day, same-day, and two-day delivery increasingly influencing their purchasing decisions.How are retailers responding to consumers’ growing demands for faster delivery?
With such resounding focus on speed, it’s no surprise that retailers are prioritizing delivering their products to their customers as quickly as possible. Nearly 60% of retailers aim to leverage faster delivery as their primary differentiating strategy, with 72% planning to invest in two-day delivery over the next two years. This is a significant increase, as only 57% of retailers currently offer two-day delivery on orders with free shipping, and demonstrates how seriously retailers are taking consumers’ demands for speed. In the short-term, nearly two-thirds (60%) of retailers plan to offer two-day shipping as their standard delivery commitment for the upcoming peak season, up 11% from 2022.
In order to compete in today’s increasingly brand-agnostic environment, retailers can’t afford to ignore consumers’ growing demands for speed. Retailers that invest in faster delivery will win customers, build brand loyalty, increase their share of wallet, and gain a competitive advantage.